Largest Long Beach labor group to vote on pension reform

LONG BEACH -- The largest city labor organization is scheduled to vote Thursday on pension reform that could save the general fund an estimated $3.9 million next year, union officials confirmed.

Details of the proposal to be considered by the 3,653-member International Association of Machinists and Aerospace Workers (IAMAW) were not made public.

However, sources said it would save $12.2 million across all funds and contains compromises similar to those made last year by Long Beach's police and fire unions.

The two groups separately agreed to create a lower tier of benefits for future workers and applied contractual raises advanced by the city as part of the agreements to pay for their full employee retirement cost share.

The givebacks are expected to save the city about $100 million by 2022.

Long Beach is in the midst of balancing a $17.2 million deficit for fiscal year 2013.

Projected shortfalls of $10.9 million in 2014 and $6.4 million in 2015 would also be impacted if the IAMAW accepted the concessions, officials said.

Mayor Bob Foster claimed in his State of the City address in January that an agreement with the union could save the city $145 million over 10 years.

City officials have said the money potentially saved by the union agreement would be applied to forestall planned cuts this year, but they are uncertain how funds would be distributed.

A budget that downsizes the city workforce by 294 positions and potentially lays off 152 employees was unveiled Aug. 1.

The reductions affect almost every city service, including police, fire, parks and libraries.

On Monday, City Manager Pat West distributed about 1,200 letters to employees in 49 different classifications notifying the workers that their position could be affected by budget cuts.

Council must pass a balanced budget by Sept. 15 for the fiscal year beginning Oct. 1.